India plans to abolish a 6% equalisation levy on online services, including advertising, as part of amendments to the Finance Bill 2025.

This information comes from a government source and indicates that the levy has affected US tech companies such as Google, Meta, and Amazon.

The amendment to the Finance Bill 2025 is expected to pass in parliament this week, following US concerns and threats of trade sanctions starting Apr. 2.

According to tax expert Amit Maheshwari, removing the levy aims to ease trade tensions between the two countries.